Globalization of industries has created a new platform for companies to expand their position by entering new market segments. However, it has created a considerable challenge for organizations that has resulted in creating multi-dimensional changes in organization structure and policies. Organizations now encourage initiative growth culture to get competitive advantage over other companies by being a market mover that enables sustainability in uncertain conditions. Decentralization of decision making and preference given towards human resource capital shows the orientation of contemporary companies towards ...view middle of the document...
Human resource management has appeared as a paramount in knowledge based economy to facilitate the organization functioning and operations in relation to changes in long term goals; consequently functional changes in short term objectives. Strategic objectives have categorized the potential abilities of organization for effective implementation of policies and goals achievement in competitive working environment. It is dependant on the advancement in organization structure, policies, procedures, and strategy that address the principal objectives of an organization (Stone, 2008). Once formulated, it is essential for contemporary organizations to maintain its strategic fit and make gradual changes considering the industry patterns and competitors actions towards growth, as unsystematic impact is observed on company’s ability if stringent to market change (Senge et al., 2008). This has created a new challenge of transformation for contemporary business in order to effectively utilize its valuable human capital resource.
Organizations are also confronting the challenge of having quality people in its workforce to support the functional ability of organization and strategic flow of comprehensive business decisions. This requires contemporary business to place strategic focus on human resource recruitment and selection in relation to retaining and offering attractive opportunities of growth to people for maintaining long term commitment with organizations (Beardwell et al., 2004). Considering the knowledge based economy role, it is essential for an organization to assess the skills and abilities required to support the organization functioning in long run and that will offer a sustainable competitive edge over competitors based on human resource capabilities that are abstract and intangible in nature. This needs organization to assess its internal structure prospective to growth orientation and practices viability for fostering individual’s performance and goals enrichment impacting the collaborating system of organization; highlighting the corporate role of organization for influencing the decision patterns in industry.
Many changes have been made in human resource functions and visionary goals to prosper the organization competitiveness objective through human resource knowledge and talent. Companies are shifting towards empowering its employee and offering them flexibility in decision making and operational work flow characterized by low formalization and decentralization with unanimous autonomy for presenting new and innovative ideas (Senge et al., 2008). Role of innovation is highly essential for defining organization’s performance and predicting the future trend in industry considering the organization productive effort for maintain its position. Viability of business is therefore highly dependant on quality and valuable human resource that present the company with talent and knowledge helpful in information/service driven...